Government will bring iron ore producers and steel manufacturers to the negotiating table to ensure that the raw material is supplied at a reasonable cost.
This will help the steel industry, which has been holding the prices for over the last three months to help the government check spiralling inflation.
A series of meetings have been lined jointly by the Ministries of Steel and Mines and the first meeting is scheduled to be held tomorrow in Bangalore between iron ore producers and steel manufacturers.
The next meeting would be held in Kolkata on August 27, and would be attended by secondary steel producers, sponge iron and pig iron manufactures and leading miners, official sources said.
In the proposed meeting, the government is likely to persuade iron ore miners to sell the raw material at reasonable rates to the steel industry, besides entering into long-term contracts with them for supply of the ore.
The steel fraternity would seek to bring down the price volatility and ensure supply security of essential inputs like iron ore, coking coal to the steel producers, industry sources said.
Confirming the meeting, leading steel maker JSW steel's spokesperson said, "We will be part of the meeting among other steel producers."
An Ispat industry official also confirmed the company's participation in the meeting. FIMI Secretary General R K Sharma said, "All the major miners of that region would be present at the meeting. We will listen to their demands."
